Remortgaging is when you switch to a different mortgage deal but stay in the same property. It could be that your existing fixed rate deal is ending and you want to move to another one, for example. If your new deal has a lower interest rate, your monthly payments will drop - happy days! But there can be costs when you switch.
Remortgaging costs can be almost zero up to around £2,000 or more, depending on the deal you're on and the one you're moving to, and the timing of the switch. We explain all this below.
Your home may be repossessed if you do not keep up repayments on your mortgage. This article is for general information only and isn't personal financial advice.
Source: typical UK market ranges, Sept 2026. Figures vary by lender and deal. Information correct at time of writing and may change. Always check the latest terms before taking out a mortgage
An early repayment charge (ERC) is a fee that many lenders charge if you repay your mortgage during the "tie-in" period. It compensates the lender for interest it won't receive on the loan if you leave early. ERCs are usually 1%-5% of the amount of the loan, so can run into thousands: paying an ERC on a £100,000 mortgage would cost £1,000-£5,000 for example. Some are tiered, so the longer you've had the deal, the lower the ERC.
You can avoid paying an ERC if you remortgage when the initial period of your deal has ended (after the 2 years of a 2-year fixed rate deal, for example). That's why many people wait until that point before they remortgage. Not all mortgages have an ERC. Find out about ERCs.
This is an admin fee that some lenders charge when you close your mortgage. Where charged, it may also be described as a mortgage exit fee or deeds-release fee. Some lenders don't charge this type of fee, according to HomeOwners Alliance. This fee is separate from the ERC.
This is the biggest setup cost with your new mortgage, but not all deals have a product fee. It's charged by the new lender to set up the deal and is typically somewhere between £999 and £1,999, based on mortgage deals on the market when we checked in September 2026. However, there were a few that were lower and higher than this range.
You can pay a product fee upfront or add it to your loan, though adding it means you'll be paying interest on it over the term of the mortgage.
Some deals can come with a high product fee and a lower rate: the key is to look at the overall cost of the deal.
Some lenders charge this small fee upfront to reserve a deal: it's also known as a reservation fee. The fee is typically £100-£200 and is non-refundable. Some lenders charge this instead of an arrangement fee, or include it in the arrangement fee. Usually you can't add a booking fee to the mortgage.
If you're switching to a new lender, it will want to know what your property is worth before lending money against the value of the property. This allows it to know your loan-to-value (LTV), which is the percentage of your property's value that you're borrowing. Find out more in our guide to remortgage valuations.
If your new mortgage is with the same lender, that's called a product transfer and the lender may not need to do a new valuation, which saves on costs. Find out about product transfers.
If you're switching lender for your remortgage, there will be some legal paperwork to update the property deeds and you'll usually need a solicitor or conveyancer (property legal specialist) for that. Many straightforward remortgage deals include free legal work or cashback to cover it.
If you do need to pay for conveyancing, it's usually around £300, according to the HomeOwners Alliance. Find out more about when you pay solicitor fees and the remortgage legal process in our guides.
Sticking with the same lender and just transferring to a new product? You generally won't need to update the property deeds so you'll save on that cost as well as valuation.
Some brokers charge a fee, which can be up to around 1% of the value of the loan. Other brokers, including Habito by Monzo, provide mortgage advice for free. Find out about mortgage broker costs in our guide.
*Habito by Monzo is authorised and regulated by the Financial Conduct Authority (FRN 714187). *
Here's a breakdown with approximate costs:
When you're considering remortgage deals, it's easy to be wowed by a low headline interest rate and miss the fees that come with it. A fee-free deal might have a higher rate but work out cheaper overall. What's cheaper will depend on the loan size, how long you stay on the deal and other factors.
That's why it's key to look at the overall cost, including fees. Our mortgage comparison sorts your results by the total cost over the initial period of the mortgage because we believe this lets you make fairer comparisons.
Sticking with the same lender and changing mortgage is called a product transfer. There's usually no legal fee or valuation and fewer checks, which means you save on those fees and it's faster than switching lender – but you miss out on accessing deals from other lenders which might beat the one you're on.
Whether you stay with your lender or switch, it's important to start planning before your fixed rate deal runs out and you're moved to your lender's default rate – its standard variable rate (SVR) – which is typically much higher.
Borrowing more or releasing equity can change your costs because it might involve a valuation and more legal work, and of course it increases what you owe. We cover this in our guide to remortgaging to release equity.
To explore the options you might be eligible for, you could have a chat with one of our friendly mortgage experts. It's free!
*Options available to you will depend on lender criteria, affordability and your personal circumstances. *
*Your home may be repossessed if you do not keep up repayments on your mortgage. *
Habito by Monzo is a mortgage broker, not a lender. We're authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
If you stick with your existing lender and do a product transfer, it can cost nothing unless the mortgage comes with a product fee. If you switch lender for your remortgage, costs can vary considerably depending on the deal, including whether you need to pay product, valuation or legal fees, according to industry estimates. This is without including any early repayment charge, which could add thousands of pounds on top.
There is a fee-free remortgage: if you're staying with the same lender and just transferring your loan to a different deal, you can avoid fees (unless your new deal comes with a product fee). But sticking with the same lender could mean missing out on better deals from other lenders that might save you money overall.
For a straightforward remortgage, expect to pay around £300 in legal fees. If you're staying with the same lender, you can typically avoid legal fees. Some lenders offer to cover your legal fees as part of the deal, as an incentive to switch to them. More in our guide to remortgage solicitor fees.
If you switch lender for your remortgage, costs can vary considerably depending on the deal, including whether you need to pay product, valuation or legal fees. The amount will depend on whether your new lender is covering your legal costs as an incentive, and whether there's a product fee for that mortgage, among other factors. If you're leaving your current deal early, there could be thousands on top of that due to an early repayment charge.
With a remortgage, you pay some fees upfront and others when you complete. You might not face all of these fees, but if you pay them, it's typically upfront: booking or application fee, valuation fee, broker fee (in some cases, paid on completion). These fees, if you have to pay them, are more likely to be on completion: product fee for the mortgage (or may be added to the mortgage amount), legal or conveyancing fees. If you pay an early repayment charge, it's due when you leave your current deal.
If you leave your mortgage during the period when you're still "locked in", you're likely to face an early repayment charge (ERC). This fee compensates the lender for the interest it was expecting to receive during the rest of the loan term but won't get as you left early. ERCs are usually 1%-5% of the amount of the loan, so be thousands: an ERC on a £100,000 mortgage would be £1,000-£5,000 for example. Some are tiered, meaning the longer you've had the deal, the lower the ERC.
You can avoid an ERC with careful planning to figure out the best time to remortgage.
This article is based on guidance from organisations such as MoneyHelper, Citizens Advice and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a mortgage deal.
This article is for general information only and isn't personal financial advice.
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A remortgage valuation is when your lender checks that your property is worth what you say it is before approving your new mortgage deal. Here, we explain all.
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